BHP, a global resources company, has taken a bold and strategic move to divert its shipments away from the Red Sea, a key shipping route. The company announced in a statement published by Reuters that the majority of its shipments do not traverse this route.

According to The Wall Street Journal, BHP’s shipments from Asia to Europe will now follow the path taken by Danish shipping company Maersk, skirting the Red Sea in favor of the Cape of Good Hope at the southern tip of Africa.

This pivot by BHP follows similar decisions made by other industry giants, including oil majors Shell, BP, and Qatar Energy.

The decision comes in the wake of an announcement by the US Secretary of State, designating the Houthis as a specially designated global terrorist, effective February 16th, in response to their threat to the security of the country.

In a joint statement, Canada and 23 other nations, including the US, Germany, Australia, and the UK, expressed concern over Houthi attacks on commercial and naval vessels, citing them as a threat to all countries relying on international maritime shipping.

Estimates from the International Monetary Fund reveal that transit volume through the Suez Canal plummeted by around 28% during the ten days ending on January 2nd, compared with a year earlier. In stark contrast, shipments circumventing the Cape of Good Hope surged by around 50% during the same period.